Saying “I Do” shouldn’t have to cost you and your fiance all the money in the world, right? Exchanges vows need to be a cost-effective and enjoyable ceremony for all parties. The average cost of a wedding tops at over $33,000, according to recent stats by The Knot.
Don’t let a lack of funds deter you from walking down the aisle to start married life with your partner! Even those with looking for a loan with bad credit should be able to have their best possible love life.
These are some examples of how to finance a wedding when you don’t have enough money.
1. How to Finance a Wedding: Personal Loans
One option to finance your wedding is by applying for a personal loan. This type of loan requires the help of a lender. You should consider applying for a personal loan at a bank where you already hold great credit.
Most personal loans have a 10% interest rate attached to them. Personal loans can help you pay for your wedding if you select the right lender.
Payments with personal loans are also typically fixed and you can be flexible with the amount of time you take to repay the entire loan. Most couples will take up to 50 months in total to repay the entire personal loan in addition to interest accrued.
2. Credit Cards
Another alternative to applying for a personal loan to pay for a wedding is to use credit cards. You might be lucky, if you have awesome credit, to pay for the cost of the wedding using solely the power of credit cards.
You also need to be sure you can pay off the entire credit card amount in full or else you may suffer the harsh consequences. Pay off more than the minimum amount each month so you can easily clear your balance.
Did you know that most couples spend the first four years of their new marriage paying off their wedding expenses? Conquer this challenge by initially high monthly payments to secure a clear balance by the end of your fifth wedding anniversary.
3. Set a Realistic Budget
If signing off on a huge personal loan and using precious credit cards does not sound like the right options for you, it’s also possible to finance your wedding by creating a clear-cut budget from the beginning.
Some key tips include: Invite fewer people to your wedding. Ask friends and family to take your photos instead of hiring an expensive photographer. Work with local businesses to cut down on the costs associated with appetizers and entrees.
Budgets are important to have and keep up with as soon as the wedding planning process starts. Write every single expense down and see where you can save money. Even the smallest budget cuts can put less stress on the financial aspect of saying “I Do”.
Some businesses are also offering a pay as you go system. Instead of paying a large chunk of the bill all at once, consider a payment plan with businesses like your florist and caterer. A payment plan can also help you figure out your larger expenses versus the expenses you can cut down on.
Seeking More Financial Advice?
These are a few ways to understand how to finance your wedding this year.
Even if money is tight, be sure to contact financial experts, such as our customer service team at Bonsai Finance, to learn more about selecting the best financial plan for your dream wedding.